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As a result of the case made for higher student grants, lecturers have voluntarily taken a pay cut to fund higher grants to students (and

As a result of the case made for higher student grants, lecturers have voluntarily taken a pay cut to fund higher grants to students (and thus, through a higher marginal propensity to consume, a greater stimulus to the economy). If students choose to spend this extra money on necessities of life such as clubbing in Spain, how does the analysis in this chapter allow us to illustrate what will happen to aggregate demand, and thus to GDP?

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